Partner Spotlight: Joe Adams
by Lauren Weidner
This quarter our partner spotlight is on Joseph F. Adams, CPA. Joe is a graduate of Villanova University where he earned a bachelors degree in economics. Joe joined the firm as a young kid out of college in 1968 and worked his way up the ranks. He received his CPA designation in both New Jersey and Pennsylvania. Today, he serves as the firm's administrative partner, which involves overseeing the day-to-day operations of the company. Throughout his 38 years with the firm, he has worked with virtually every type of client including real estate developers, manufacturing, sales, and service industries. His experience and expertise are vast, and he has been utilized as an expert witness in several tax and insurance litigation cases.
In addition to his role as administrative partner, Joe is active with Alloy Silverstein Financial Services. He is licensed as a General Securities Representative - NASD Series 7, has passed the Uniform Combined State Law - NASD Series 66, and is able to offer securities through 1st Global Capital Corporation, Member FINRA/SPIC as a registered Investment Advisor Representative. He is also a licensed health and life insurance broker.
Joe is a member of the New Jersey Society of CPAs, the Pennsylvania Society of CPAs, and the American Institute of Certified Public Accountants. He currently sits on the Board of Directors of The Bank.
Joe was born and raised in Philadelphia and now resides in Marlton, New Jersey with his wife Robin and their two sons, Matthew and Mark. He is an enthusiastic Eagles and Phillies fan and holds season tickets for both teams. During the past three summers, Joe and his family have driven cross-country twice, taking a different route each time. When he is not cruising down the open road, you can find him at home taking care of his lawn and gardens, completing various home improvement projects, or cooking. Whether he is attending his younger sons' sporting events or visiting his three grown children and four grandchildren, family is Joe's top priority.
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Alloy Happenings
by Mark Thomas
Ren Cicalese, CPA, PFS
Was recognized for his outstanding achievements in financial services at 1st Global's Premier Experience in Vancouver, BC, June 8-10.
Spoke to high school students regarding money management at Rutgers - Camden BizEd leadership program.
Moderated a Chamber of Commerce Southern New Jersey seminar on emergency planning for businesses.
Joe Adams, CPA
Attended 1st Global's due diligence meeting in Pittsburgh, PA, July 26-27, sponsored by Atlas America.
Bruce Mulford, CPA, ABV
Attended 1st Global's due diligence meeting in Boston, MA, August 10-11, sponsored by John Hancock Funds and John Hancock Life.
Dennis Vogt, CPA
Attended 1st Global's due diligence meeting in Chicago, IL, August 15-16, sponsored by Inland Securities Corporation.
Tom Adams, CPA
Attended the Army Community Service Organization's 42nd birthday at Ft. Dix as a representative of one of the honored groups.
Participated for the 4th year as a chaperone and mentor with the New Jersey Society of CPA's Scholar's Institute held at the College of New Jersey in Lawrenceville.
Attended the American Legion State Convention in Wildwood as a delegate.
Congratulations:
We are pleased to announce that our website, www.alloysilverstein.com, was recognized for its informative content in the August 2006 Journal of Accountancy article entitled "Smart Stops on the Web." Visit our website to find weekly tax tips, monthly financial planning tips, as well as money management information.
Welcome:
Richard Vernal Jr., CPA, formerly employed in the private sector.
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Follow the IRS rules if you borrow from your company
Borrowing from your closely held corporation may seem simple, but without proper planning it can be painfully expensive. The IRS may treat an improperly structured loan as a dividend, which would be taxable to you and not deductible by the corporation.
The IRS generally asks the following questions in reviewing shareholder loans:
Does the borrowing shareholder control the corporation? The greater the degree of control, the more closely the loan will be scrutinized.
Did the corporation require adequate collateral for the loan?
Is the borrower financially able to repay the loan?
Did the shareholder sign a promissory note with an appropriate interest rate, a reasonable repayment schedule, and a fixed maturity date?
Has the borrower been making the required payments on schedule? If not, has the corporation tried to collect?
A shareholder loan should be structured as though it were being made to an unrelated party, with a signed promissory note that charges interest at the IRS statutory rate in effect at the time of the loan. Requiring adequate collateral will be regarded as a favorable indicator by the IRS, although it is not mandatory. The borrower should make payments according to the agreed-upon schedule.
Since circumstances are different for each corporation and each shareholder, contact us before transferring money from your company.
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Cafeteria Plans
Reprinted from CCH Client Letter Toolkit
A cafeteria plan (which is also referred to as a "flexible benefit" plan or "flex plan") is an arrangement an employer may sponsor under which employees are permitted to choose between certain nontaxable benefits offered by the employer (e.g., health insurance, life insurance, dependent care assistance, etc.) and taxable benefits (typically cash) without being taxed on the potential to receive cash. If you choose to sponsor a cafeteria plan, the plan must be set forth in a written plan document.
As the employer sponsoring the plan you can choose the types of benefits that will be offered under a cafeteria plan. However, the nontaxable benefits you offer have to fall under the category of "qualified benefits." Qualified benefits under a cafeteria plan are certain benefits that are excludable from an employee's income under a specific provision in the Internal Revenue Code.
A cafeteria plan can be funded with employer contributions, employee contributions or a combination of both. When a cafeteria plan is funded at least partially with employee contributions, employees authorize the contributions by signing salary reduction agreements. When employee contributions through salary reduction agreements are used to fund the plan, it will mean that the employee will report a lower taxable income, and consequently pay less tax. As for any contributions made by the company as an employer, the company will be able to deduct that amount from its taxable income as well.
Employees typically choose their benefits once a year. Specific rules govern when employees can make their benefit elections and under what circumstances they will be permitted to change their elections. Recent regulations have expanded the group of events that may generate changes in employee elections; included are divorce, birth, adoption, marriage, death and now when there is a significant increase or decrease in the cost of benefits or an improvement in the coverage provided.
Now that we have provided you with an overview of how these plans work, please feel free to contact us if you have more questions and/or if you would like to establish a cafeteria plan for your company.
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